The monetary policy framework of the Eurosystem is formulated so as to ensure the participation of a broad range of counterparties in its monetary policy operations.

Only the institutions meeting the eligibility criteria set out in Article 55 of Instruction Nr 3/2015 of Banco de Portugal may participate in the Eurosystem’s monetary policy operations, namely financially sound institutions, subject to minimum reserves and harmonised supervision, and complying with the operational requirements.

The Eurosystem may, however, select a limited number of counterparties to participate in fine-tuning operations.

Regarding fine-tuning operations conducted through foreign exchange swaps carried out for monetary policy purposes, the national central banks select only active participants in the foreign exchange market. The group of counterparties for these operations is limited to the institutions selected for foreign exchange intervention operations of the Eurosystem, that are located in the euro area.

For structural operations conducted by means of outright transactions, there are no restrictions placed a priori to the group of participating counterparties.

Counterparties that do not comply with the rules established by the Eurosystem for participation in its monetary policy operations shall be subject to penalties and discretionary measures.